On a scale of 1 to 10, the Dow industrials’ backdrop is in the ballpark of a seven.

The index notched a two-month closing high to conclude the first quarter, and holds well within striking distance of record territory. Moreover, the March consolidation phase has been orderly, despite Fed-related concerns, and geopolitical tensions.

Significant resistance spans from 4,222 to 4,246, and a close atop this area would strengthen the bull case.

Against this backdrop, the S&P 500 Index is the most representative U.S. stock market gauge. It’s comprised of 500 “larger-cap” names. (Some components are big mid-caps.)

Consider that the S&P has rallied from a bullish V-shaped reversal, and the ensuing pullback has been flat.

Morevoer, the S&P has almost precisely nailed the 1,850 support on several recent tests. Its two-week closing low rests at 1,849.

So all told, the technical backdrop isn’t picture-perfect — it rarely is — though the S&P’s path of least resistance continues to point higher. This is a market to buy on pullbacks to support.

Tuesday’s Watch List

The charts below detail names that are technically well positioned. These are radar screen names — sectors or stocks poised to move in the near term. For the original comments on the stocks below, see The Technical Indicator Library.

The group’ s narrow two-week trading range suggests that selling pressure is limited, positioning it to further outperform. The sector is also well positioned on the monthly chart.

Company

Symbol

Mon Close

Support

Resistance

Western Digital Corp.

WDC

$91.82

$90.40

New High

Western Digital Corp.
WDC, -0.91%
is a well positioned large-cap data storage name.

Technically speaking, the shares have rallied from a bullish double bottom defined by the February and March lows.

Underlying the upturn, its relative strength index (not illustrated) has notched 10-week highs, improving the chances of incremental follow-through. The risk/reward can be favorable from current levels with a stop at the breakout point.

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